In what year will payback occur for Project X? Round up to the next year if your answer is not an even number. 3.2 years = in year 4. Project X Initial investment $150.000 Year one inflows $35,000 Year two inflows $30,000 Years three inflows $10.000 Year four inflows $8.000 Years 5-15 inflows $15,000 Year 10 Year 13 Year 11 Year 12 Year 9 (Ignore income taxes in this problem.) Your Company's cost of capital is 3%, It is contemplating the purchase of equipment to replace equipment that it is currently leasing. The useful life of the equipment is seven years. What is the net present value of purchasing the equipment? Cost of equipment $650,000 Current lease payments $95,000 Working capital needed $50,000 Repair end of year 2 $12,000 Repair end of year 4 $20,000 Salvage value $125,000 $2,942 ($35,601) $4,609 $3,947 $5,049